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CITY OF MUSKEGON CITY COMMISSION MEETING SEPTEMBER 11, 2018 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 AGENDA □ CALL TO ORDER: □ PRAYER: □ PLEDGE OF ALLEGIANCE: □ ROLL CALL: □ HONORS AND AWARDS: □ INTRODUCTIONS/PRESENTATION: □ CITY MANAGER’S REPORT: □ CONSENT AGENDA: A. Approval of Minutes City Clerk B. Approval of a Neighborhood Enterprise Zone Certificate – 662 Terrace Point Circle Planning & Economic Development C. Approval of a Neighborhood Enterprise Zone Certificate – 664 Terrace Point Circle Planning & Economic Development D. Approval of a Neighborhood Enterprise Zone Certificate – 668 Terrace Point Circle Planning & Economic Development E. Approval of a Neighborhood Enterprise Zone Certificate – 670 Terrace Point Circle Planning & Economic Development F. Sale of Property at 1078 Second Street Planning & Economic Development G. Sale of A Buildable Lot at 654 Allen Avenue Planning & Economic Development H. Police Cruisers DPW/Equipment I. Certification of MERS Representatives Finance J. Supplemental MERS Contribution Finance Page 1 of 2 K. Approve First Amendment to First Amended and Restated Real Estate Sale and Development Agreement City Manger L. Approve CRC Recommendations to Accept Resignations and Appoint Members to Fill Various Vacancies City Clerk □ PUBLIC HEARINGS: A. Request to Conduct a Public Hearing of the Community & Neighborhood Services Department Consolidated Annual Performance Evaluation Report (CAPER 2017) Community & Neighborhood Services □ COMMUNICATIONS: □ UNFINISHED BUSINESS: □ NEW BUSINESS: A. 2018 Capital Improvement Projects – Remembrance Drive Reconstruction Department of Public Works B. Rental Ordinance Changes Public Safety □ ANY OTHER BUSINESS: □ PUBLIC PARTICIPATION: ► Reminder: Individuals who would like to address the City Commission shall do the following: ► Fill out a request to speak form attached to the agenda or located in the back of the room. ► Submit the form to the City Clerk. ► Be recognized by the Chair. ► Step forward to the microphone. ► State name and address. ► Limit of 3 minutes to address the Commission. ► (Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.) □ CLOSED SESSION: □ ADJOURNMENT: ADA POLICY: THE CITY OF MUSKEGON WILL PROVIDE NECESSARY AUXILIARY AIDS AND SERVICES TO INDIVIDUALS WHO WANT TO ATTEND THE MEETING UPON TWENTY-FOUR HOUR NOTICE TO THE CITY OF MUSKEGON. PLEASE CONTACT ANN MARIE MEISCH, CITY CLERK, 933 TERRACE STREET, MUSKEGON, MI 49440 OR BY CALLING (231) 724- 6705 OR TTY/TDD DIAL 7-1-1- TO REQUEST A REPRESENTATIVE TO DIAL (231) 724-6705. Page 2 of 2 Memorandum To: Mayor and Commissioners From: Frank Peterson Re: City Commission Meeting Date: September 6 2018 Here is a quick outline of the items on our very full agenda(s): WORK SESSION 1. We are proposing some changes to our rental ordinance. Jeff Lewis and representatives from SAFEbuilt will be in attendance to discuss. 2. We are proposing an extension to the purchase agreement for 1000 West Western to work out a number of title issues. We are now asking to close on the transaction by October 4, 2018. 3. We are proposing that staff be allowed to enter into an agreement to sell 1078 Second Street. This is one of the rehab projects that the city started back in January. The purchase price is $140,000. The purchaser is a current resident of the neighborhood that will be moving from an apartment on Hamilton. She is a first time home buyer and we are excited to see this home go to her. 4. We have three responses to the Mid-Town Square 2 request for proposals. Staff will be spending time Friday and this weekend finalizing our recommendation. We anticipate being in a position to make an initial recommendation to the Commission at work session. If there is an agreement in direction, we will plan to present to the neighborhood at an upcoming neighborhood meeting. 5. ADA Department of Justice overview. Dwana Thompson will be in attendance to discuss this topic. REGULAR MEETING 1. Under the Consent Agenda, we are asking the Commission to consider the following: a. Approval of meeting minutes from the most-recent City Commission meeting. b. Approval of an NEZ certificate for 662 Terrace Pointe Circle. c. Approval of an NEZ certificate for 664 Terrace Pointe Circle. d. Approval of an NEZ certificate for 668 Terrace Pointe Circle. e. Approval of an NEZ certificate for 670 Terrace Pointe Circle. f. Approval of a sale agreement for the property located at 1078 Second Street. g. Sale of the buildable lot at 654 Allen Avenue. The purpose of the sale is to accommodate the neighboring property owner’s desire to expand her daycare. h. Authorization to purchase seven (7) new police cruisers for the police department. The total cost is $250,117.00. This was budgeted in the equipment fund. i. Appointment of City of Muskegon MERS representative at the upcoming annual MERS conference. j. Authorize staff to make a supplemental $111,257.58 payment to MERS. 2. Under Public Hearings we will accept comments regarding the City’s 2017 Consolidated Annual Performance Evaluation Report. This is a required public hearing to be compliant with our CDBG and HOME programs. 3. Under the New Business, we are asking the Commission to consider the following: a. Authorization to award the Remembrance Road reconstruction project to Jackson-Merkey Contractors for $454,559.00. The original engineers estimate was $588,000. This road improvement will support the Hemisphere Design Company’s new distribution center – which is currently under construction, and slated to open in 2019. The funds are budgeted in the Major Street Fund. b. Rental Ordinance Changes. This item will be discussed in depth at the work session. Let me know if you have any questions/comments/concerns Date: September 6, 2018 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Approval of Minutes SUMMARY OF REQUEST: To approve minutes of the August 28, 2018 Regular Meeting. FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Approval of the minutes. CITY OF MUSKEGON CITY COMMISSION MEETING AUGUST 28, 2018 @ 5:30 P.M. MUSKEGON CITY COMMISSION CHAMBERS 933 TERRACE STREET, MUSKEGON, MI 49440 MINUTES The Regular Commission Meeting of the City of Muskegon was held at City Hall, 933 Terrace Street, Muskegon, MI at 5:30 p.m., Tuesday, August 28, 2018. Pastor Leroy Lockhart, New Birth Ministries, opened the meeting with prayer, after which the Commission and public recited the Pledge of Allegiance to the Flag. ROLL CALL FOR THE REGULAR COMMISSION MEETING: Present: Mayor Stephen J. Gawron, Vice Mayor Eric Hood Commissioners Ken Johnson, Byron Turnquist, Willie German, Jr., Debra Warren, and Dan Rinsema-Sybenga, City Manager Frank Peterson, City Attorney John Schrier, and City Clerk Ann Meisch. INTRODUCTIONS/PRESENTATION: A. Breast Feeding Awareness Month A resolution recognizing the benefits of breast feeding was presented by the Mayor. 2018-61 CONSENT AGENDA: A. Approval of Minutes City Clerk SUMMARY OF REQUEST: To approve minutes of the August 13, 2018 Worksession and the August 14, 2018 regular meeting. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the minutes. B. Gaming License Request from West Michigan’s Finest City Clerk SUMMARY OF REQUEST: West Michigan’s Finest is requesting a resolution recognizing them as a non-profit organization operating in the City for the purpose of obtaining a Gaming License. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval. Page 1 of 5 C. Gaming License Request from Family Promise of the Lakeshore City Clerk SUMMARY OF REQUEST: Family Promise of the Lakeshore is requesting a resolution recognizing them as a non-profit organization operating in the City for the purpose of obtaining a Gaming License. STAFF RECOMMENDATION: Approval. D. Division Street Outfall Green Infrastructure Project – Resolution of Authority to Sign Agreement with CSX Transportation Department of Public Works SUMMARY OF REQUEST: Approve the resolution of authority to sign an agreement with CSX Transportation, Inc. to facilitate the green infrastructure project at the City’s Division Street outfall to Muskegon Lake. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the resolution of authority to sign the agreement with CSX Railroad. E. Launch Ramp Ordinance Change – 2nd Reading Department of Public Works SUMMARY OF REQUEST: To amend Chapter 58 Parks and Recreation ordinance to clarify daily and annual launch ramp permit parameters, vessel and trailer size restrictions, and commercial use of City of Muskegon launch ramps. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approve the modified language for the ordinance. Motion by Commissioner Warren, second by Commissioner German, to approve the consent agenda as presented, except item F. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga, and Turnquist Nays: None MOTION PASSES 2018-62 ITEMS REMOVED FROM CONSENT AGENDA: F. New Position: Arena Director City Manager SUMMARY OF REQUEST: The Arena Director will be responsible for the overall management of the L.C. Walker Arena including planning, developing, scheduling and marketing profitable programs of interest, providing leadership and direction to all staff and building relationships/addressing needs with all Page 2 of 5 different user groups of the Ice Arena. The Director prepares contracts for the utilization of facilities and makes necessary arrangements to prepare for events; plans and implements programs and events; directs the operational repairs of the arena, ice plant, and ice surface; and orders necessary supplies and materials, and supervises support staff. This position will report directly to the City Manager. We are requesting that the City Commission authorize staff to open a new position for Arena Director. The position was previously filled via a management contract. Staff feels the position would best meet the Arena’s needs as a regular full time employee. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Authorize the City Manager to Hire and appoint an Arena Director as part of the city staff. Motion by Commissioner Turnquist, second by Commissioner Warren, to authorize the City Manager to Hire and appoint an arena Director as part of the city staff. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga, and Turnquist Nays: None MOTION PASSES 2018-63 NEW BUSINESS: A. Concurrence with the Housing Board of Appeals Notice and Order to Demolish Public Safety 1967 Reynolds Street 1932 Reynolds Street 1679 Park Street 1303 6th Street 1144 3rd Street SUMMARY OF REQUEST: This is to request that the City Commission concur with the findings of the Housing Board of Appeals that the structures are unsafe, substandard, a public nuisance and that they be demolished within 30 days. It is further requested that administration be directed to obtain bids for the demolition of the structures and that the Mayor and City Clerk be authorized and directed to execute a contract for demolition with the lowest responsible bidder or staff may issue infraction tickets to the owner, agent or responsible party if they do not demolish the structure. Page 3 of 5 FINANCIAL IMPACT: None or General Funds BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To concur with the Housing Board of Appeals decision to demolish. Motion by Commissioner Johnson, second by Commissioner German, to concur with the Housing Board of Appeals decision to demolish all structures on the property at 1967 Reynolds, 1932 Reynolds, 1679 Park Street, and 1303 6th Street. ROLL VOTE: Ayes: Hood, Warren, German, Rinsema-Sybenga, Turnquist, Johnson, Gawron Nays: None MOTION PASSES Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to concur with the Housing Board of Appeals decision to demolish all structures on the property at 1144 3rd Street. ROLL VOTE: Ayes: Warren, German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, and Hood Nays: None MOTION PASSES B. Rezoning request for 235, 239, 240, 250, and 254 Monroe Avenue from R-3, High-Density Single-Family Residential to Form Based Code, Urban Residential Planning & Economic Development SUMMARY OF REQUEST: Staff initiated request to rezone the properties to allow for more housing options. These properties will be the location of the next phase of Midtown Square homes. The Urban Residential zoning designation allows for row houses, which would fit in nicely between he business district and the detached homes in the neighborhood. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the rezonings. COMMITTEE RECOMMENDATION: The initial request included the rezoning of several other parcels as well. A motion to rezone the properties at 235-254 Monroe Avenue to Form Based Code, Urban Residential was approved 8-1, with one member absent. Motion by Commissioner German, second by Commissioner Johnson, to approve the rezonings for 235, 239, 240, 250 & 254 Monroe Avenue from R-3, High-Density Single-Family Residential to Form Based Code, Urban Residential Page 4 of 5 ROLL VOTE: Ayes: German, Rinsema-Sybenga, Turnquist, Johnson, Gawron, Hood, and Warren Nays: None MOTION PASSES 2018-64 CLOSED SESSION: A. Property Acquisition Motion by Vice Mayor Hood, second by Commissioner Rinsema-Sybenga, to go into closed session to discuss property acquisition. ROLL VOTE: Ayes: Turnquist, Johnson, Gawron, Hood, Warren, German, and Rinsema-Sybenga Nays: None MOTION PASSES Motion by Commissioner Rinsema-Sybenga, second by Vice Mayor Hood, to come out of closed session. ROLL VOTE: Ayes: Johnson, Gawron, Hood, Warren, German, Rinsema-Sybenga, and Johnson. Nays: None MOTION PASSES ADJOURNMENT: The City Commission Meeting adjourned at 8:20 p.m. Respectfully Submitted, Ann Marie Meisch, City Clerk, MMC Page 5 of 5 Commission Meeting Date: September 11, 2018 Date: September 6, 2018 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate – 662 Terrace Point Circle SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Terrace Point Landing, LLC for the new construction of a home at 662 Terrace Point Circle. The estimated cost for construction is $203,417. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: Taxation will be applied as one-half of the previous year’s state average principal residence millage rate to the value of the facility. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 9/6/2018 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Terrace Point Landing, LLC to construct a new home at 662 Terrace Point Circle in the Terrace Point Condominium neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the local unit of government is allowing the six (6) month grace period after construction commencement to apply, which is allowed under the law; WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be approved. Adopted this 11th day of September, 2018. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 9/6/18 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on September 11, 2018. By: ________________________ Ann Meisch City Clerk 9/6/18 Commission Meeting Date: September 11, 2018 Date: September 6, 2018 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate – 664 Terrace Point Circle SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Terrace Point Landing, LLC for the new construction of a home at 664 Terrace Point Circle. The estimated cost for construction is $199,760. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: Taxation will be applied as one-half of the previous year’s state average principal residence millage rate to the value of the facility. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 9/6/2018 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Terrace Point Landing, LLC to construct a new home at 664 Terrace Point Circle in the Terrace Point Condominium neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the local unit of government is allowing the six (6) month grace period after construction commencement to apply, which is allowed under the law; WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be approved. Adopted this 11th day of September, 2018. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 9/6/18 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on September 11, 2018. By: ________________________ Ann Meisch City Clerk 9/6/18 Commission Meeting Date: September 11, 2018 Date: September 6, 2018 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate – 668 Terrace Point Circle SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Terrace Point Landing, LLC for the new construction of a home at 668 Terrace Point Circle. The estimated cost for construction is $168,739. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: Taxation will be applied as one-half of the previous year’s state average principal residence millage rate to the value of the facility. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 9/6/2018 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Terrace Point Landing, LLC to construct a new home at 668 Terrace Point Circle in the Terrace Point Condominium neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the local unit of government is allowing the six (6) month grace period after construction commencement to apply, which is allowed under the law; WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be approved. Adopted this 11th day of September, 2018. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 9/6/18 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on September 11, 2018. By: ________________________ Ann Meisch City Clerk 9/6/18 Commission Meeting Date: September 11, 2018 Date: September 6, 2018 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Approval of a Neighborhood Enterprise Zone Certificate – 670 Terrace Point Circle SUMMARY OF REQUEST: An application for a Neighborhood Enterprise Zone (NEZ) certificate has been received from Terrace Point Landing, LLC for the new construction of a home at 670 Terrace Point Circle. The estimated cost for construction is $168,739. The applicant has met local and state requirements for the issuance of the NEZ certificate. FINANCIAL IMPACT: Taxation will be applied as one-half of the previous year’s state average principal residence millage rate to the value of the facility. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Approval of the NEZ certificate. COMMITTEE RECOMMENDATION: None 9/6/2018 Resolution No. ________ MUSKEGON CITY COMMISSION RESOLUTION TO APPROVE THE ISSUANCE OF A NEIGHBORHOOD ENTERPISE ZONE CERTIFICATE WHEREAS, an application for a Neighborhood Enterprise Zone Certificate has been filed with the City Clerk by Terrace Point Landing, LLC to construct a new home at 670 Terrace Point Circle in the Terrace Point Condominium neighborhood, and; WHEREAS, the applicant has satisfied both the local and state eligibility criteria for a Neighborhood Enterprise Zone Certificate; WHEREAS, the local unit of government is allowing the six (6) month grace period after construction commencement to apply, which is allowed under the law; WHEREAS, the Neighborhood Enterprise Zone Certificate has been approved for twelve (12) years; NOW, THEREFORE, BE IT RESOLVED that the application for a Neighborhood Enterprise Zone Certificate for the new construction of a home by Terrace Point Landing, LLC be approved. Adopted this 11th day of September, 2018. Ayes: Nays: Absent: By: __________________________ Stephen J. Gawron, Mayor Attest: _________________________ Ann Meisch City Clerk 9/6/18 CERTIFICATION I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on September 11, 2018. By: ________________________ Ann Meisch City Clerk 9/6/18 Commission Meeting Date: September 11, 2018 Date: September 6, 2018 To: Honorable Mayor and City Commissioners From: Planning & Economic Development RE: Sale of the Property at 1078 Second St SUMMARY OF REQUEST: Staff initiated request to approve the purchase agreement for the sale of the home at 1078 2nd St to Rachel Stewart. This home was recently purchased by the city, rehabbed and converted back into a single-family home from a three-unit home. FINANCIAL IMPACT: The City will receive the amount of money as described in the purchase agreement. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the purchase agreement. COMMITTEE RECOMMENDATION: None 9/6/2018 REAL ESTATE PURCHASE AGREEMENT This Real Estate Purchase Agreement (“Agreement”) is made August 30, 2018, by and between the City of Muskegon, a municipal corporation, with offices at 933 Terrace Street, Muskegon, Michigan 49440 (“Seller”), and Rachel Stewart, of 81 Hamilton Ave. Apt. #38, Muskegon, MI 49441 ("Buyer") (collectively the “Parties”). 1. General Agreement and Description of Property. Seller agrees to sell, and Buyer agrees to buy the real estate and all improvements thereon, with all beneficial easements, and with all of Seller’s right, title, and interest in all adjoining public ways, commonly known as 1078 2nd Street, Muskegon, Michigan 49440, situated in the City of Muskegon, Muskegon County, Michigan (“Property”), and legally described in Exhibit A, subject to the reservations, restrictions, and easements of record, provided said reservations, restrictions, and easements of record are reasonably acceptable to Buyer upon disclosure and review of the same. 2. Purchase Price and Manner of Payment. The purchase price for the Property shall be One Hundred Forty Thousand Dollars and 00/100 ($140,000.00). If the appraised value of the Property is determined to be at least Five Thousand Dollars ($5,000.00) less than the purchase price, the Parties agree to reduce the purchase price to an amount no more than Five Thousand Dollars ($5,000.00) above the appraised value of the Property; provided, however, if the appraised value is below $100,000.00, the Parties agree to negotiate a new purchase price. The purchase price shall be payable as follows: a. Upon execution of this Agreement, Buyer will deliver to Seller a cashier’s check payable to Seller in the amount of $1,000 (the “Earnest Money”), to be held by the Title Company. If the transaction contemplated by this Agreement closes, the Earnest Money will be applied against the purchase price. If the transaction fails to close as a result of a breach by Buyer or Buyer otherwise failing to comply with the terms of this Agreement, Seller shall have the right to retain the Earnest Money. b. At Closing, Buyer will pay the remaining balance of the purchase price in full to Seller, by wire transfer, certified or cashier’s check. 3. Title Insurance. Seller, at Seller’s expense, will obtain a commitment for title insurance issued by Transnation Title Agency (“Title Company”), for an amount not less than the purchase price, guaranteeing title on the conditions required in this Agreement. In the event the reservations, restrictions, or easements of record disclosed by said title commitment are, in the reasonable discretion of Buyer, deemed unreasonable, Seller shall have 20 days from the date Seller is notified in writing of such unreasonableness of restriction and such unmarketability of title, to remedy such objections. If Seller resolves such restrictions and remedies the title (by obtaining satisfactory title insurance or otherwise) within the time specified, Buyer agrees to complete this sale as provided in this Agreement, within 10 days of written notification from Seller. If Seller fails to resolve such restrictions or remedy the title within the time above specified or fails to obtain satisfactory title insurance, this Agreement shall terminate. The premium for the owner’s title policy, if any, shall be paid by Buyer. 4. Property Taxes and Assessments. Real estate taxes and assessments due and payable prior to Closing shall be the responsibility of Seller. Real estate taxes that become due and payable after the date of Closing will be the responsibility of Buyer. 5. Personal Property and Fixtures. All fixtures and appliances are included in this sale at no additional cost to Buyer, except as specifically listed below. These items include, without limitation, 1 the following: plumbing, heating and lighting fixtures; all drapery and curtain hardware; all window shades and blinds; all kitchen appliances; wall-to-wall carpeting, if attached; all attached mirrors and bathroom mirrors; stationary laundry tubs; washer and electric dryer, water softener, water heater; heating and air conditioning equipment (window units excluded); ceiling fans; built-in gas grills; water pump and pressure tank; TV antenna; screens and storm windows and doors; awnings; mailbox; all plantings; garage door openers and controls; fireplace screens and grates; locks and keys; and all personal property located on the Property as of Closing. All such fixtures and other personal property included in the sale are being sold “AS-IS”. The following items of personal property shall be excluded from the sale: __________________________________________________ __________________________________________________________________________________. 6. Survey. Seller will provide Buyer with any existing surveys of the Property. Buyer, at Buyer’s own expense, may obtain a survey of the Property, and Buyer or Buyer’s surveyor or other agents may enter the Property for that purpose prior to Closing; provided, however, Buyer must order such survey within 7 days following the full execution of this Agreement. If no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer’s own judgment as to the location, boundaries and area of the Property and improvements thereon without regard to any representations that may have been made by Seller or any other person. In the event that a survey by a registered land surveyor made prior to Closing discloses a material encroachment or substantial variation from the presumed land boundaries or area, Buyer will notify Seller of such encroachment or variation within 5 days following receipt of the survey, and Seller shall have the option of effecting a remedy within 10 days after disclosure and paying the cost of such survey, or this Agreement shall terminate at the election of either party. Buyer may elect to purchase the Property subject to said encroachment or variation. 7. Inspections by Buyer and Condition of Property. Upon completion of Seller’s renovations to the Property, including construction of a garage, Seller shall provide Buyer with a Certificate of Final Completion. For a period of fourteen (14) calendar days following Buyer’s receipt of Seller’s Certificate of Final Completion (“Inspection Period”), Buyer has the right to inspect all or any portion of the Property at Buyer’s sole cost and expense. These inspections may include, without limitation, the soil and groundwater; all structures; pest inspections; municipal inspections as described below; well and septic, if necessary; and the plumbing, heating, ventilating, air conditioning, and electrical systems. All such inspections shall be on prior notice to Seller and be done at reasonable times. Buyer shall indemnify, defend and hold Seller harmless from and against any damage to or injury to persons or property caused by Buyer or Buyer’s agents in conducting such inspections. Buyer shall have the right to terminate this Agreement prior to the end of the Inspection Period if the inspections are not acceptable to Buyer, in Buyer’s reasonable discretion, by giving Seller written notice prior to the end of the Inspection Period, in which case Buyer would be entitled to return of the Earnest Money. If Buyer does not exercise Buyer’s right to terminate prior to the end of the Inspection Period, the right to terminate shall be deemed to have been waived and Buyer will be deemed to have accepted the Property, improvements thereon, and all fixtures in their present, AS-IS condition. 8. Condition of Property. No implied warranties of habitability, quality, condition, fitness for a particular purpose, or any other implied warranties shall operate between Seller and Buyer, and Buyer expressly waives any and all such implied warranties. Buyer understands and agrees that the Property and the personal property are taken “AS IS”. Buyer further represents and warrants that Buyer is not purchasing the Property based on any representations made by or on behalf of Seller. 9. Lead-Based Paint. Buyer acknowledges receiving a Lead Paint Disclosure from Seller, a copy of which is attached as Exhibit B. 2 10. Seller’s Disclosure Statement. Upon issuing a Certificate of Final Inspection to Buyer, Seller shall simultaneously provide Buyer with a completed Seller’s Disclosure Statement. 11. Real Estate Commission. Buyer and Seller both acknowledge and agree that no agent, broker, salesperson, or other party is entitled to a real estate commission upon the Closing of this sale. Buyer and Seller both agree to indemnify and hold the other harmless from any liability, including reasonable attorney fees, occasioned by reason of any person or entity asserting a claim for a real estate commission arising from actions taken by the other party. 12. Closing. The closing date of this sale shall be as mutually agreed by the parties, but in no event later than ______________, 2018 (“Closing”). The Closing shall be conducted at the Title Company or at such other location as the parties mutually agree. 13. Costs. The costs associated with this Agreement and the Closing shall be paid as follows: (i) Seller shall pay the state and county transfer taxes in the amount required by law; (ii) Buyer shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the extent required by this Agreement; (iii) Buyer shall pay for the cost of recording the quit-claim deed; and (iv) Seller shall pay any Closing fees charged by the Title Company. 14. Deliveries. At Closing, Seller shall execute and deliver a quit-claim deed for the Property to Buyer. The parties shall execute and deliver such other documents reasonably required to close the transaction. 15. Possession. Possession of the Property will be delivered to Buyer at Closing; provided, however, after full execution of this Agreement, Seller will reasonably permit Buyer to enter certain areas of the Property to store certain items in the Property while construction on the Property is being completed. If Buyer chooses to keep personal items at the Property prior to Closing, Seller shall not be responsible for the loss, damage, or theft of Buyer’s items kept on the Property. Seller agrees that the Property shall be vacant prior to Closing. 16. Default. a. By Seller. If Seller for any reason does not perform the material terms and conditions of this Agreement, Buyer may, at Buyer’s option, elect to enforce the performance of this Agreement or be entitled to terminate this Agreement. b. By Buyer. If Buyer for any reason does not perform the terms and conditions of this Agreement, Seller, at Seller’s option and in addition to any and all legal and equitable remedies available under Michigan law, may elect to enforce the performance of this Agreement, or be entitled to terminate this Agreement and retain the Earnest Money as liquidated damages. 17. Risk of Loss. Until the time of Closing, risk of loss because of the damage to or destruction of any improvements located on the Property shall be solely that of Seller; provided, however, that if such loss or damage to any improvements on the Property was caused by Buyer prior to the time of Closing, Buyer shall be solely responsible for such risk of loss. In the event the improvements located on the Property are damaged at the fault of Seller prior to the date of Closing, and are not repaired by Seller prior to Closing, Buyer may elect to terminate this Agreement; or Buyer may elect to continue this Agreement in which event Seller shall assign to Buyer any insurance proceeds to be received by Seller because of said damage or other destruction to the Property. 3 18. Notice. All notices and other deliveries required under this Agreement shall be made and given to the appropriate party, or the office of the party, at the address set forth above or at such other address as may hereafter be specified by such parties by written notice from time to time. Notices shall be effective on the date of receipt, if given by hand, express delivery or recognized courier service. Notices given by certified mail shall be deemed effective five business days after the date of deposit in an authorized postal facility, as shown by its receipt for certified mail. 19. Miscellaneous. a. Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the state of Michigan. b. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any other agreements, written or oral, that may have been made by and between the parties with respect to the subject matter of this Agreement. All contemporaneous or prior negotiations and representations have been merged into this Agreement. c. Amendment. This Agreement shall not be modified or amended except in a subsequent writing signed by all parties. d. Binding Effect. This Agreement shall be binding upon and enforceable by the parties and their respective legal representatives, permitted successors, and assigns. e. Counterparts. This Agreement may be executed in counterparts, and each set of duly delivered identical counterparts which includes all signatories, shall be deemed to be one original document. f. Full Execution. This Agreement requires the signature of all parties. Until fully executed, on a single copy or in counterparts, this Agreement is of no binding force or effect and if not fully executed, this Agreement is void. g. Non-Waiver. No waiver by any party of any provision of this Agreement shall constitute a waiver by such party of any other provision of this Agreement. h. Severability. Should any one or more of the provisions of this Agreement be determined to be invalid, unlawful, or unenforceable in any respect, the validity, legality, and enforceability of the remaining provisions of this Agreement shall not in any way be impaired or affected. i. No Reliance. Each party acknowledges that it has had full opportunity to consult with legal and financial advisors as it has been deemed necessary or advisable in connection with its decision to knowingly enter into this Agreement. Neither party has executed this Agreement in reliance on any representations, warranties, or statements made by the other party other than those expressly set forth in this Agreement. j. Assignment or Delegation. Except as otherwise specifically set forth in this Agreement, neither party shall assign all or any portion of its rights and obligations contained in this Agreement without the express or prior written approval of the other party, in which approval may be withheld in the other party's sole discretion. 4 Exhibit A The following described Property situated in the City of Muskegon, County of Muskegon, State of Michigan: The South ½ of Lot 4, Block 352, Revised Plat (of 1903) of the City of Muskegon, as recorded in Liber 3 of Plats, Page 71, Muskegon County Records Parcel No.: 61-24-205-352-0004-10 Commonly known as: 1078 2nd Street, Muskegon, Michigan 49440 Exhibit B Lead Disclosure Form DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS Lead Warning Statement Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. Seller's Disclosure (a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below): (i) ___ Known lead-based paint and/or lead-based paint hazards are present in the housing (explain). _______________________________________________________________________________ _______________________________________________________________________________ (ii) ___ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check (i) or (ii) below): (i) ___ Seller has provided the Buyer with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below). _______________________________________________________________________________ _______________________________________________________________________________ (ii) ___ Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. Buyer's Acknowledgment (initial) (c) ___ Buyer has received copies of all information listed above. (d) ___ Buyer has received the pamphlet Protect Your Family from Lead in Your Home. (e) ___ Buyer has (check (i) or (ii) below): (i) ___ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) ___ waived the opportunity to conduct a risk assessment or inspection for the presence of lead- based paint and/or lead-based paint hazards. Agent's Acknowledgment (initial) (f) ___ Agent has informed the seller of the seller's obligations under 42 USC 4852d and is aware of his/her responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. Seller – City of Muskegon Buyer – ________________________ _______ ________________________ _______ Stephen Gawron, Mayor Date Rachel Stewart Date Commission Meeting Date: September 11, 2018 Date: September 4, 2018 To: Honorable Mayor & City Commission From: Planning & Economic Development Department RE: Sale of Buildable Vacant Lot at 654 Allen Ave. SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 654 Allen Ave. to Denise Koetje to combine with her property at 650 Allen Ave., Muskegon, MI. The lot is 50 x 132 ft. and Ms. Koetje has offered $500 for the property plus the fee to register the deed. She has a licensed day care out of her home and would like to fence the property, install play equipment and provide more space for the children in her care. She had already purchased 16 feet of this property in 2017. The City has owned this property since August 12, 2003 with no inquiries for potential construction. By combining this with Ms. Koetje’s property; this will alleviate the City from continued maintenance and place the property back on the tax rolls. The City has spent an average of $395.00 per year in maintenance of the vacant lot since 2002. FINANCIAL IMPACT: The sale of this lot will generate additional tax revenue for the City and will place the property back on the City’s tax rolls thus relieving the City of continued maintenance costs. BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To approve the attached resolution and to authorize both the Mayor and the Clerk to sign said resolution and deed. Resolution No. _______ MUSKEGON CITY COMMISSION RESOLUTION APPROVING THE SALE OF A BUILDABLE LOT AT 654 ALLEN AVE. FOR $500. WHEREAS, Denise Koetje will be allowed to purchase the parcel designated as number 24-205-051-0012-00, located at 654 Allen Ave. for $500; and WHEREAS, Denise Koetje will combine this with the property she owns at 654 Allen Ave.; and WHEREAS, the sale would generate additional tax revenue for the City and relieve the City of further maintenance costs; and WHEREAS, the sale of a buildable lot would require a home to be constructed; instead she will be combining this with her current property that does have a home; and WHEREAS, she will not be constructing a new home on this parcel; and NOW THEREFORE BE IT RESOLVED, that parcel number 24-205-051-0012-00, located at 654 Allen Ave. to be sold to Denise Koetje for $500. CITY OF MUSKEGON REVISED PLAT OF 1903 THE EAST 50 FEET OF LOT 12 BLOCK 51. Adopted this 11th day of September 2018. Ayes: Nays: Absent By: _________________________ Stephen J. Gawron Mayor Attest: ________________________ Ann Meisch, MMC City Clerk I hereby certify that the foregoing constitutes a true and complete copy of a resolution adopted by the City Commission of the City of Muskegon, County of Muskegon, Michigan at a regular meeting held on September 11, 2018. By: ________________________ Ann Meisch, MMC City Clerk 2 REAL ESTATE PURCHASE AGREEMENT THIS AGREEMENT is made September 11, 2018 (“Effective Date”), by and between the CITY OF MUSKEGON, a municipal corporation, with offices at 933 Terrace, Muskegon, Michigan 49440 ("Seller"), and Denise Koetje, of 650 Allen Ave, Muskegon, MI 49442 ("Buyer"). 1. General Agreement and Description of Premises. Seller agrees to sell, and Buyer agrees to buy, the real estate, and all improvements thereon, with all beneficial easements, and with all of Seller's right, title and interest in all adjoining public ways, located in the City of Muskegon, Muskegon County, Michigan ("Premises"), and specifically described as: SEE ATTACHMENT A Subject to the reservations, restrictions and easements of record, provided said reservations, restrictions and easements of record are acceptable to Buyer upon disclosure and review of the same, and subject to any governmental inspections required by law. 2. Purchase Price and Manner of Payment. The purchase price for the Premises shall be Five Hundred and no/100 Dollars ($500), payable in cash, money order, or bank certified check plus any fees associated with registering the deed. 3. Taxes and Assessments. All taxes and assessments that are due and payable at the time of Closing shall be paid by Seller prior to or at Closing. All taxes and special assessments that become due and payable after Closing shall be the responsibility of Buyer. 4. Title Insurance. The Buyer wishes to purchase the property as is, where is and may obtain title insurance at a later date and agrees to be responsible for any fees associated with a title search or title insurance for the property. 5. Survey. Buyer at its own expense may obtain a survey of the Premises, and Buyer or its surveyor or other agents may enter the Premises for that purpose prior to Closing. If no survey is obtained, Buyer agrees that Buyer is relying solely upon Buyer's own judgment as to the location, boundaries and area of the Premises and improvements thereon without regard to any representations that may have been made by Seller or any other person. In the event that a survey by a registered land surveyor made prior to closing discloses an encroachment or substantial variation from the presumed land boundaries or area, Seller shall have the option of effecting a remedy within thirty (30) days after disclosure. Buyer may elect to purchase the Premises subject to said encroachment or variation. 7. Condition of Premises and Examination by Buyer. NO IMPLIED WARRANTIES OF HABITABILITY, QUALITY, CONDITION, FITNESS FOR A PARTICULAR PURPOSE, OR ANY OTHER IMPLIED WARRANTIES SHALL OPERATE BETWEEN SELLER AND BUYER, AND BUYER EXPRESSLY WAIVES ANY AND ALL SUCH IMPLIED WARRANTIES. BUYER UNDERSTANDS AND AGREES THAT THE PREMISES ARE TAKEN "AS IS," SUBJECT TO THE EXPRESS COVENANTS, CONDITIONS AND/OR EXPRESS WARRANTIES CONTAINED IN THIS PURCHASE AGREEMENT. BUYER FURTHER SAYS THAT HE HAS PERSONALLY INSPECTED THE PREMISES AND IS SATISFIED WITH THE CONDITION OF THE LAND, AND THE BUILDINGS AND IMPROVEMENTS THEREON, AND THAT THE PROPERTY IS BEING PURCHASED AS A RESULT OF SUCH INSPECTION AND INVESTIGATION AND NOT DUE TO ANY REPRESENTATIONS MADE BY OR ON BEHALF OF SELLER. SELLER KNOWS OF NO HAZARDOUS SUBSTANCES OR CONTAMINATION, AND BUYER WAIVES ANY CLAIM AGAINST SELLER IN THE EVENT SUCH STUBSTANCES ARE FOUND. 8. Closing. The Buyer shall pay for the premises and registering of the quit claim deed within 30 days of the City Commission approving the sale. 9. Delivery of Deed. Seller shall execute and deliver a quit claim deed to The Register of Deed’s Office for the Premises. 11. Date of Possession. Possession of Premises is to be delivered to Buyer by Seller once the deed has been recorded at the Muskegon County Register of Deed’s Office. 12. Costs. Buyer shall be responsible to pay the Michigan transfer tax, if any, in the amount required by law. In addition, Buyer shall be responsible to pay for the recording of any instrument that must be recorded to clear title to the Premises, to the extent required by this Agreement. Buyer shall pay for the cost of recording the deed with the Seller registering the deed. 13. General Provisions. a. Paragraph Headings. The paragraph headings are inserted in this Agreement only for convenience. b. Pronouns. When applicable, pronouns and relative words shall be read as plural, feminine or neuter. c. Merger. It is understood and agreed that all understandings and agreements previously made between Buyer and Seller are merged into this Agreement, which alone fully and completely expresses the agreement of the parties. d. Governing Law. This Agreement shall be interpreted and enforced pursuant to the laws of the State of Michigan. e. Successors. All terms and conditions of this Agreement shall be binding upon the parties, their successors and assigns. f. Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision(s) had never been contained herein. g. Survival of Representations and Warranties. The representations, warranties, covenants and agreements contained in this Agreement and in any instrument provided for herein shall survive the Closing and continue in full force and effect after the consummation of this purchase and sale. h. Modification of the Agreement. This Agreement shall not be amended except by a writing signed by Seller and Buyer. The parties have executed this Real Estate Purchase Agreement on the date written below their names, to be effective as of the day and year first above written. WITNESSES: SELLER: CITY OF MUSKEGON _______________________________ By_____________________________________ Stephen J. Gawron, Mayor Date: __________________ _______________________________ _______________________________________ Ann Meisch, MMC, Clerk Date: __________________ BUYER: Denise Koetje ________________________________ _____________________________________ Name: Denise Koetje Date: __________________ ________________________________ ATTACHMENT A CITY OF MUSKEGON REVISED PLAT OF 1903 THE EAST 50 FEET OF LOT 12 BLOCK 51. Parcel No.: 61-24-205-051-0012-00 Commonly known as: 654 Allen Avenue QUIT CLAIM DEED KNOW ALL MEN BY THESE PRESENTS: That the CITY OF MUSKEGON, a municipal corporation, of 933 Terrace Street, Muskegon, Michigan 49440, QUIT CLAIMS TO: Denise Koetje whose address is 650 Allen Ave., Muskegon, MI 49442. the following described premises situated in the City of Muskegon, County of Muskegon, State of Michigan, to wit: CITY OF MUSKEGON REVISED PLAT OF 1903 THE EAST 50 FEET OF LOT 12 BLOCK 51, otherwise known as 654 Allen Ave. (#24-205-051-0012-00). for the sum of: Five Hundred Dollars ($500.00) PROVIDED, HOWEVER, whenever possible, this property is to be combined with the owner’s original parcel #24-205-052-0011-00, otherwise known as 650 Allen Ave. This deed is exempt from real estate transfer tax pursuant to the provisions of MCLA 207.505(h)(i) and MCLA 207.526 Sec. 6(h)(i). Dated this 11th day of September, 2018 Signed in the presence of: CITY OF MUSKEGON ______________________________ By_________________________________ Stephen J. Gawron, Its Mayor ______________________________ and________________________________ Ann Meisch, MMC, Its Clerk STATE OF MICHIGAN COUNTY OF MUSKEGON The foregoing instrument was acknowledged before me this 11th day of September, 2018, by STEPHEN J. GAWRON and ANN MEISCH, MMC, the Mayor and Clerk, respectively, of the CITY OF MUSKEGON, a municipal corporation, on behalf of the City. ____________________________________ PREPARED BY: Hope Mitchell _______________________, Notary Public City of Muskegon Acting in the County of Muskegon, MI 933 Terrace St Rm 202 Muskegon County, MI Muskegon, MI 49440 My Comm. Expires: ___________________ Telephone: (231) 724-6760 WHEN RECORDED RETURN TO: GRANTEE SEND SUBSEQUENT TAX BILLS TO: GRANTEE Date: 9/11/2018 To: Honorable Mayor and City Commissioners From: DPW/Equipment RE: Police Cruisers SUMMARY OF REQUEST: The Equipment Division is requesting permission to purchase seven (7) new police cruisers from Berger Chevrolet, off the Oakland County Contract, which is the lowest price available. This will create a financial impact of $250,117.00 that was budgeted for out of the Equipment Div. FINANCIAL IMPACT: $250.117.00 BUDGET ACTION REQUIRED: None. Amount is what was budgeted. STAFF RECOMMENDATION: Authorize staff to purchase seven (7) new police cruisers from Berger Chevrolet. O:\CLERK\Common\Word\Agenda Items for Next Meeting\2018\091118\10_2018Tahoe7.doc Commission Meeting Date: September 11, 2018 Date: September 5, 2018 To: Honorable Mayor and City Commissioners From: Finance RE: Supplemental MERS Contribution SUMMARY OF REQUEST: For the fiscal year that ended June 30, 2018, staff conservatively budgeted for pension costs. The amount the City was expensing each pay period for our pension costs was conservatively calculated, this created a surplus. At this time staff believes it is appropriate to take this opportunity to make a $111,257.58 supplemental payment (above the actuarial computed amount) to MERS. This is money that the city would be required to pay to MERS eventually. Paying early, while the city is in a position do so, may help to ease some pressure on future city budgets. FINANCIAL IMPACT: $111,257.58 supplemental payment to MERS. $111,257.58 will be paid from monies already set aside for MERS in the collector fund. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: Authorize staff to make a supplemental $111,257.58 payment to MERS. AGENDA ITEM NO. _______________ CITY COMMISSION MEETING __________________________ TO: Honorable Mayor and City Commissioners FROM: Frank Peterson, City Manager DATE: September 11, 2018 RE: 1000 W. Western – First Amendment to First Amended and Restated Real Estate Sale and Development Agreement SUMMARY OF REQUEST: To approve the First Amendment to First Amended and Restated Real Estate Sale and Development Agreement. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None at this time. STAFF RECOMMENDATION: To authorize the city manager to enter into the Agreement. COMMITTEE RECOMMENDATION: None. FIRST AMENDMENT TO FIRST AMENDED AND RESTATED REAL ESTATE SALE AND DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO FIRST AMENDED AND RESTATED REAL ESTATE SALE AND DEVELOPMENT AGREEMENT ("Amendment") is made effective as of August 31, 2018, and amends the First Amended and Restated Real Estate Sale and Development Agreement by and between HARBOR WEST, LLC, a Michigan limited liability company ("Buyer"), and CITY OF MUSKEGON, a Michigan municipal corporation ("Seller"), dated as of August 15, 2018 (the "Agreement"), regarding certain real property located in the City of Muskegon, Muskegon County, Michigan, commonly known as 1000 W. Western Avenue. In consideration of the mutual covenants contained in this Amendment, Buyer and Seller agree as follows: 1. Inspection Period. Paragraph 10(a) of the Agreement is amended to provide that the Inspection Period has been extended and will end on October 4, 2018. 2. Closing. Paragraph 11(a) of the Agreement is amended to provide that the Closing Date shall be not later than October 5, 2018. 3. Miscellaneous. The provisions of this Amendment shall be part of the Agreement and shall control in the event of any inconsistency. This Amendment may be executed in one or more counterparts, and by the different parties to this Amendment on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same document. Faxed signatures, or scanned and electronically transmitted signatures, on this Amendment, shall be deemed to have the same legal effect as original signatures on this Amendment. This Amendment shall be binding upon and inure to the benefit of the parties and their respective successors and assigns. Except as expressly amended by this Amendment, the Agreement is ratified and confirmed as originally executed. All capitalized terms not otherwise defined in this Amendment shall have the same meanings set forth in the Agreement. [SIGNATURES ON FOLLOWING PAGE] Buyer and Seller executed this First Amendment to First Amended and Restated Real Estate Sale and Development Agreement effective as of August 31, 2018. Dated: _____________, 2018 HARBOR WEST, LLC, a Michigan limited liability company By: Name: W. Sidney Smith Title: Sole Manager Buyer Dated: ____________, 2018 CITY OF MUSKEGON, a Michigan municipal corporation By: ____________________________ Name: ____________________________ Title: Seller 17520657 -2- Date: September 11, 2018 To: Honorable Mayor and City Commissioners From: Ann Marie Meisch, City Clerk RE: Community Relations Committee Appointment Recommendations SUMMARY OF REQUEST: To accept resignations and appointments for various community relations committees, boards, authorities, and commissions, as follows: Citizen Police Review Board Resign: Ellouise Hieftje (Neighborhood Association Representative) and Carlos Flores (Member of a Minority Based Organization) Appoint: Teresa Emory CDBG/CDC Resign: Tom Pastoor (Citizen at Large) Appoint: Eleanor Canter Construction Code Board of Appeals Appoint: Brion Boucher Housing Commission Resign: Maxine Lenear (Citizen) Appoint: Ken Grant FINANCIAL IMPACT: None. BUDGET ACTION REQUIRED: None. STAFF RECOMMENDATION: To concur with the recommendations of the Community Relations Committee and approve the resignations and appointments. Commission Meeting Date: September 11, 2018 Date: September 6, 2018 To: Honorable Mayor & City Commission From: Community and Neighborhood Services Department RE: Request to conduct a Public Hearing of the Community & Neighborhood Services department Consolidated Annual Performance Evaluation Report (CAPER 2017) SUMMARY OF REQUEST: To conduct a public hearing of the 2017 CAPER for projects funded with CDBG and HOME HUD Entitlements to the City of Muskegon, Community and Neighborhood Services department. FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: To submit the 2017 CAPER including any public comments received during the 20 day comment period ending September 26, 2018. COMMITTEE RECOMMENDATION: None Date: September 4th, 2018 To: Honorable Mayor and City Commissioners From: Department of Public Works RE: 2018 Capital Improvement Projects – Remembrance Drive Reconstruction SUMMARY OF REQUEST: Award contract (H-1720) for reconstruction, storm sewer installation, sanitary sewer, curb and gutters on Remembrance Drive from Keating Avenue south to the entrance of the new KL Industries facility. Four contractors submitted bids for this project as follows: Jackson-Merkey Contractors, Inc. ................................ $454,559.00 Connan Inc. .................................................................. $497,572.55 Diversco Construction Co............................................. $593,926.80 Dykema Excavators, Inc............................................... $672,897.00 FINANCIAL IMPACT: $454,559.00 BUDGET ACTION REQUIRED: None. The project will be funded through planned capital improvement project. STAFF RECOMMENDATION: Award the project to the low bidder, Jackson-Merkey Contractors, Inc. City Of Muskegon Project Description: Remembrance Drive Reconstruction Project Number: H-1720 Project Engineer: Moore and Bruggink (Justin Longstreth) Bid Opening: 4-Sep-18 Engineers Estimate Jackson-Merkey Contractors Connan, Inc. Diversco Construction Co. Dykema Excavators, Inc. Line Item Pay Code Description Units Quantity Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 1500001 Mobilization, Max 10% LSUM 1 $ 53,594.00 $ 53,594.00 $ 44,500.00 $ 44,500.00 $ 30,000.00 $ 30,000.00 $ 54,847.00 $ 54,847.00 $ 65,000.00 $ 65,000.00 2 2020002 Tree, Rem, 19 inch to 36 inch Ea 4 $ 850.00 $ 3,400.00 $ 515.00 $ 2,060.00 $ 461.00 $ 1,844.00 $ 1,175.00 $ 4,700.00 $ 1,750.00 $ 7,000.00 3 2020004 Tree, Rem, 6 inch to 18 inch Ea 3 $ 350.00 $ 1,050.00 $ 420.00 $ 1,260.00 $ 150.00 $ 450.00 $ 675.00 $ 2,025.00 $ 750.00 $ 2,250.00 4 2030015 Sewer, Rem, Less than 24 inch Ft 15 $ 15.00 $ 225.00 $ 8.00 $ 120.00 $ 20.00 $ 300.00 $ 9.00 $ 135.00 $ 20.00 $ 300.00 5 2040020 Curb and Gutter, Rem Ft 330 $ 8.00 $ 2,640.00 $ 3.90 $ 1,287.00 $ 6.00 $ 1,980.00 $ 3.50 $ 1,155.00 $ 2.00 $ 660.00 6 2040021 Curb, Rem Ft 800 $ 8.00 $ 6,400.00 $ 2.80 $ 2,240.00 $ 5.00 $ 4,000.00 $ 3.50 $ 2,800.00 $ 2.00 $ 1,600.00 7 2040050 Pavt, Rem Syd 100 $ 7.00 $ 700.00 $ 7.00 $ 700.00 $ 6.00 $ 600.00 $ 4.00 $ 400.00 $ 5.00 $ 500.00 8 2040080 Exploratory Investigation, Vertical Ft 50 $ 50.00 $ 2,500.00 $ 10.00 $ 500.00 $ 20.00 $ 1,000.00 $ 100.00 $ 5,000.00 $ 50.00 $ 2,500.00 9 2050041 Subgrade Undercutting, Type II Cyd 675 $ 10.00 $ 6,750.00 $ 0.10 $ 67.50 $ 10.00 $ 6,750.00 $ 6.00 $ 4,050.00 $ 10.00 $ 6,750.00 10 2057002 Roadway Grading Sta 14 $ 2,800.00 $ 39,200.00 $ 2,000.00 $ 28,000.00 $ 2,500.00 $ 35,000.00 $ 2,950.00 $ 41,300.00 $ 980.00 $ 13,720.00 11 2080036 Erosion Control, Silt Fence Ft 1000 $ 2.00 $ 2,000.00 $ 2.00 $ 2,000.00 $ 1.80 $ 1,800.00 $ 1.60 $ 1,600.00 $ 3.00 $ 3,000.00 12 2087050 Erosion Control, Inlet Protection, Silt Bag Ea 6 $ 150.00 $ 900.00 $ 110.00 $ 660.00 $ 110.00 $ 660.00 $ 125.00 $ 750.00 $ 150.00 $ 900.00 13 3027011 Aggregate Base, 8 inch, 21AA, Modified Syd 2200 $ 10.00 $ 22,000.00 $ 8.50 $ 18,700.00 $ 12.50 $ 27,500.00 $ 16.80 $ 36,960.00 $ 9.00 $ 19,800.00 14 3050002 HMA Base Crushing and Shaping Syd 3450 $ 2.50 $ 8,625.00 $ 2.20 $ 7,590.00 $ 2.50 $ 8,625.00 $ 4.10 $ 14,145.00 $ 4.00 $ 13,800.00 15 3057011 Salvaged Crushed Material, 8 inch Syd 3200 $ 3.00 $ 9,600.00 $ 2.70 $ 8,640.00 $ 2.50 $ 8,000.00 $ 6.75 $ 21,600.00 $ 5.00 $ 16,000.00 16 4020600 Sewer, Cl E, 12 inch, Tr Det B Ft 48 $ 52.00 $ 2,496.00 $ 33.50 $ 1,608.00 $ 37.00 $ 1,776.00 $ 41.50 $ 1,992.00 $ 38.25 $ 1,836.00 17 4027001 Storm Sewer, Dual Wall Perforated ADS N12 w/ Sock, 18 inch, Tr Det Bt F 420 $ 55.00 $ 23,100.00 $ 27.00 $ 11,340.00 $ 26.00 $ 10,920.00 $ 36.50 $ 15,330.00 $ 35.80 $ 15,036.00 18 4030312 Dr Structure, Tap, 12 inch Ea 1 $ 350.00 $ 350.00 $ 410.00 $ 410.00 $ 280.00 $ 280.00 $ 859.00 $ 859.00 $ 800.00 $ 800.00 19 4037050 Catch Basin Special Detail Ea 5 $ 2,000.00 $ 10,000.00 $ 1,760.00 $ 8,800.00 $ 1,530.00 $ 7,650.00 $ 1,528.00 $ 7,640.00 $ 2,000.00 $ 10,000.00 20 4037050 Dr Structure Cover, Type K, Modified Ea 5 $ 700.00 $ 3,500.00 $ 520.00 $ 2,600.00 $ 740.00 $ 3,700.00 $ 565.00 $ 2,825.00 $ 600.00 $ 3,000.00 21 4037050 Dr Structure Cover, Adj, Case I, Modified Ea 1 $ 1,050.00 $ 1,050.00 $ 360.00 $ 360.00 $ 480.00 $ 480.00 $ 554.00 $ 554.00 $ 750.00 $ 750.00 22 4037050 Dr Structure Cover, Type B, Modified Ea 1 $ 575.00 $ 575.00 $ 375.00 $ 375.00 $ 470.00 $ 470.00 $ 340.00 $ 340.00 $ 425.00 $ 425.00 23 4037050 Dr Structure Cover, Type Q, Modified Ea 6 $ 575.00 $ 3,450.00 $ 375.00 $ 2,250.00 $ 830.00 $ 4,980.00 $ 365.00 $ 2,190.00 $ 450.00 $ 2,700.00 24 5010005 HMA Surface, Rem Syd 550 $ 2.50 $ 1,375.00 $ 7.00 $ 3,850.00 $ 2.30 $ 1,265.00 $ 6.00 $ 3,300.00 $ 5.00 $ 2,750.00 25 5010025 Hand Patching Ton 15 $ 200.00 $ 3,000.00 $ 200.00 $ 3,000.00 $ 200.00 $ 3,000.00 $ 200.00 $ 3,000.00 $ 280.00 $ 4,200.00 26 5010045 HMA, 3E3 Ton 980 $ 80.00 $ 78,400.00 $ 74.40 $ 72,912.00 $ 74.32 $ 72,833.60 $ 74.32 $ 72,833.60 $ 115.00 $ 112,700.00 27 5010051 HMA, 4E3 Ton 655 $ 85.00 $ 55,675.00 $ 85.85 $ 56,231.75 $ 85.84 $ 56,225.20 $ 85.84 $ 56,225.20 $ 130.00 $ 85,150.00 28 5010061 HMA Approach Ton 50 $ 125.00 $ 6,250.00 $ 125.00 $ 6,250.00 $ 125.00 $ 6,250.00 $ 125.00 $ 6,250.00 $ 175.00 $ 8,750.00 29 8010005 Driveway, Nonreinf Conc, 6 inch Syd 25 $ 45.00 $ 1,125.00 $ 36.00 $ 900.00 $ 36.00 $ 900.00 $ 36.00 $ 900.00 $ 96.40 $ 2,410.00 30 8027001 Curb and Gutter, Conc, Det F4, Modified Ft 2980 $ 20.00 $ 59,600.00 $ 11.00 $ 32,780.00 $ 12.00 $ 35,760.00 $ 11.00 $ 32,780.00 $ 18.00 $ 53,640.00 31 8027001 Driveway Opening, Conc, Det M, Modified Ft 150 $ 25.00 $ 3,750.00 $ 11.00 $ 1,650.00 $ 11.00 $ 1,650.00 $ 11.00 $ 1,650.00 $ 24.80 $ 3,720.00 32 8030030 Curb Ramp Opening, Conc Ft 30 $ 25.00 $ 750.00 $ 11.00 $ 330.00 $ 11.00 $ 330.00 $ 11.00 $ 330.00 $ 19.95 $ 598.50 33 8030036 Sidewalk Ramp, Conc, 6 inch Sft 400 $ 8.00 $ 3,200.00 $ 4.50 $ 1,800.00 $ 4.50 $ 1,800.00 $ 4.50 $ 1,800.00 $ 7.50 $ 3,000.00 34 8037001 Detectable Warning Surface, Modified Ft 25 $ 55.00 $ 1,375.00 $ 60.00 $ 1,500.00 $ 60.00 $ 1,500.00 $ 60.00 $ 1,500.00 $ 60.00 $ 1,500.00 35 8100371 Post, Steel, 3 lb Ft 65 $ 6.00 $ 390.00 $ 6.10 $ 396.50 $ 6.50 $ 422.50 $ 6.50 $ 422.50 $ 6.50 $ 422.50 Page 1 of 2 36 8100402 Sign, Type III, Erect, Salv Ea 3 $ 100.00 $ 300.00 $ 50.00 $ 150.00 $ 50.00 $ 150.00 $ 50.00 $ 150.00 $ 50.00 $ 150.00 37 8100405 Sign, Type IIIB Sft 45 $ 20.00 $ 900.00 $ 16.25 $ 731.25 $ 18.00 $ 810.00 $ 18.00 $ 810.00 $ 18.00 $ 810.00 38 8110041 Pavt Mrkg, Ovly Cold Plastic, 12 inch, Crosswalk Ft 110 $ 6.00 $ 660.00 $ 6.00 $ 660.00 $ 6.00 $ 660.00 $ 6.00 $ 660.00 $ 6.00 $ 660.00 39 8110045 Pavt Mrkg, Ovly Cold Plastic, 24 inch, Stop Bar Ft 15 $ 12.00 $ 180.00 $ 15.00 $ 225.00 $ 15.00 $ 225.00 $ 15.00 $ 225.00 $ 15.00 $ 225.00 40 8110232 Pavt Mrkg, Waterborne, 4 inch, Yellow Ft 600 $ 0.25 $ 150.00 $ 0.95 $ 570.00 $ 0.95 $ 570.00 $ 0.95 $ 570.00 $ 0.95 $ 570.00 41 8120022 Barricade, Type III, High Intensity, Lighted, Furn Ea 8 $ 75.00 $ 600.00 $ 100.00 $ 800.00 $ 30.00 $ 240.00 $ 30.00 $ 240.00 $ 30.00 $ 240.00 42 8120023 Barricade, Type III, High Intensity, Lighted, Oper Ea 8 $ 5.00 $ 40.00 $ 10.00 $ 80.00 $ 1.00 $ 8.00 $ 1.00 $ 8.00 $ 1.00 $ 8.00 43 8120030 Channelizing Device, 42 inch, Furn Ea 50 $ 15.00 $ 750.00 $ 8.50 $ 425.00 $ 11.00 $ 550.00 $ 11.00 $ 550.00 $ 11.00 $ 550.00 44 8120031 Channelizing Device, 42 inch, Oper Ea 50 $ 1.00 $ 50.00 $ 0.50 $ 25.00 $ 1.00 $ 50.00 $ 1.00 $ 50.00 $ 1.00 $ 50.00 45 8120170 Minor Traf Devices LSUM 1 $ 16,000.00 $ 16,000.00 $ 1,275.00 $ 1,275.00 $ 9,000.00 $ 9,000.00 $ 25,700.00 $ 25,700.00 $ 10,000.00 $ 10,000.00 46 8120350 Sign, Type B, Temp, Prismatic, Furn Sft 400 $ 4.00 $ 1,600.00 $ 3.00 $ 1,200.00 $ 3.00 $ 1,200.00 $ 3.00 $ 1,200.00 $ 3.00 $ 1,200.00 47 8120351 Sign, Type B, Temp, Prismatic, Oper Sft 400 $ 1.00 $ 400.00 $ 0.25 $ 100.00 $ 0.01 $ 4.00 $ 0.01 $ 4.00 $ 1.00 $ 400.00 48 8120352 Sign, Type B, Temp, Prismatic, Special, Furn Sft 75 $ 4.00 $ 300.00 $ 4.00 $ 300.00 $ 3.00 $ 225.00 $ 3.00 $ 225.00 $ 3.00 $ 225.00 49 8120353 Sign, Type B, Temp, Prismatic, Special, Oper Sft 75 $ 1.00 $ 75.00 $ 0.50 $ 37.50 $ 0.01 $ 0.75 $ 0.01 $ 0.75 $ 1.00 $ 75.00 50 8167011 Turf Establishment Syd 4500 $ 4.50 $ 20,250.00 $ 0.10 $ 450.00 $ 2.00 $ 9,000.00 $ 6.50 $ 29,250.00 $ 5.00 $ 22,500.00 51 8167021 Landscape Mulch, Wood Cyd 25 $ 25.00 $ 625.00 $ 35.00 $ 875.00 $ 55.00 $ 1,375.00 $ 55.00 $ 1,375.00 $ 45.00 $ 1,125.00 52 8237050 Valve Box, Adjust Ea 2 $ 750.00 $ 1,500.00 $ 215.00 $ 430.00 $ 240.00 $ 480.00 $ 295.00 $ 590.00 $ 500.00 $ 1,000.00 53 8257001 Sanitary Sewer, Rem, Less than 24 inch Ft 55 $ 15.00 $ 825.00 $ 25.00 $ 1,375.00 $ 9.70 $ 533.50 $ 29.75 $ 1,636.25 $ 40.00 $ 2,200.00 54 8257050 Sanitary Manhole Special Detail Ea 5 $ 2,500.00 $ 12,500.00 $ 3,330.00 $ 16,650.00 $ 2,700.00 $ 13,500.00 $ 2,460.00 $ 12,300.00 $ 3,500.00 $ 17,500.00 55 8257050 Sanitary Manhole Special Detail, w/ Drop Connection Ea 1 $ 3,000.00 $ 3,000.00 $ 5,000.00 $ 5,000.00 $ 3,900.00 $ 3,900.00 $ 4,409.00 $ 4,409.00 $ 6,150.00 $ 6,150.00 56 8257050 Sanitary Sewer Bulkhead, 12 inch Ea 2 $ 350.00 $ 700.00 $ 1,130.00 $ 2,260.00 $ 270.00 $ 540.00 $ 180.00 $ 360.00 $ 700.00 $ 1,400.00 57 8257050 Sanitary Sewer Tap, 12 inch Ea 2 $ 750.00 $ 1,500.00 $ 1,680.00 $ 3,360.00 $ 1,250.00 $ 2,500.00 $ 1,133.00 $ 2,266.00 $ 1,250.00 $ 2,500.00 58 8507001 Sanitary Sewer Lateral, PVC SDR 35, 6 inch, Tr Det B Ft 70 $ 55.00 $ 3,850.00 $ 27.00 $ 1,890.00 $ 25.00 $ 1,750.00 $ 30.70 $ 2,149.00 $ 45.20 $ 3,164.00 59 8507001 Sanitary Sewer, PVC SDR 35, 12 inch, Tr Det B Ft 1370 $ 75.00 $ 102,750.00 $ 64.25 $ 88,022.50 $ 80.00 $ 109,600.00 $ 76.65 $ 105,010.50 $ 97.10 $ 133,027.00 Totals: $ 588,500.00 $ 454,559.00 $ 497,572.55 $ 593,926.80 $ 672,897.00 As-Read Same Same Same Same Page 2 of 2 COMMISSION MEETING DATE; September 11, 2018 Date: August 28, 2018 To: Honorable Mayor and City Commissioners From: Jeffrey Lewis, Director of Public Safety RE: Rental Ordinance Changes _______________________________________________________ SUMMARY OF REQUEST: The Director of Public Safety requests that the Commission authorize the approval of the Rental Ordinance changes. This will allow Building Safety Inspections (Rental) to get more detailed information and create timelines to remedy violations. The Rental Ordinance sections include; 10-329 – Time to correct violation 10-351(d) – Change in register information 10-351(e) – Application; contents 10-351(h) – Exemption from registration requirement 10-352(b) – Issuances 10-352(d) - Validity 10-352(f) – Length of time certificate of compliance is valid • See attached for update language change FINANCIAL IMPACT: None BUDGET ACTION REQUIRED: None STAFF RECOMMENDATION: Staff recommends approval of the Rental Ordinances changes.
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